A prominent property mogul with a portfolio exceeding 350 homes, valued at nearly $250 million, has announced an ambitious goal to acquire 100 additional properties within a single month. Nathan Birch, the founder of the property group B Invested and a father of two, is employing a banking mechanism known as 'leverage' to achieve this target.
Leveraging Equity for Expansion
His strategy involves drawing out equity from his existing properties through refinancing deals, which then funds the purchase of new homes. Many of these acquisitions have been secured for as little as $200,000, allowing for rapid portfolio growth. "I'd like to see if I can get 100 properties in a month," he revealed in an interview with realestate.com.au. "If you're an investor, buying in bulk will absolutely help you build a portfolio."
Recent Acquisitions and Market Focus
Mr Birch has recently purchased a block of seven units in Central North Queensland for $146,000 each, which rent for $400 per week. Additionally, he acquired a unit in northern Queensland for $90,000 and two studios in Brisbane, each costing $160,000. He emphasises the importance of investing in affordable suburbs, stating, "Buying in affordable suburbs has always been my message – I'm still buying $110,000 to $400,000 properties right across Australia."
He prefers units over houses due to their superior cash flow after accounting for expenses such as council rates, water rates, and insurance. "Units pump out better cash flow than houses after all of the expenses," he explained.
Finding Value in Market Trends
Mr Birch often seeks value outside general market growth trends. For instance, in Newport, Melbourne, where the median unit price has dropped 5.3% in the last year to $748,500, he purchased a package comprising a house and six units for $1.9 million. He claims this price was approximately $1.5 million below market value, highlighting his knack for identifying undervalued opportunities.
Past Ambitions and Public Reaction
This is not the first time Mr Birch has set such a goal; he made a similar claim in May last year. He acknowledges that his ambition may upset some Australians, particularly amid the ongoing cost-of-living and housing crises as property prices continue to rise. "There will be a whole bunch of people who won't like it. Some people will say 'how dare he'," he said. However, he remains focused on his strategy, adding, "I've just come to accept that not everyone agrees with it. Even my mum, when I got to 200 properties, she said 'don't be stupid, don't buy more'. The thing is, my actions are based on numbers. This is what keeps me focused."
From Humble Beginnings to Prolific Investor
Growing up in a single-income household in Mt Druitt in western Sydney, Mr Birch made his first investment at age 18 with money saved from working while still at school. He has since become one of Australia's most prolific real estate investors by acquiring rundown homes in low socioeconomic suburbs. By the age of 35, he had amassed over 300 properties in his portfolio.
He recalled that family members initially expressed concerns about his investments. "My mum is fearful. She was excited for the first few properties but then she said 'you'll go bankrupt'," he shared. "All this noise from people who loved me were thoughts. They weren't real. Many of my family members didn't know how all this debt stuff worked. Now my mum says 'I don't know how you do it, but you know what you are doing'."
Mr Birch's journey underscores a disciplined approach to property investment, leveraging financial mechanisms to expand his holdings while navigating market dynamics and personal scepticism.
